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Blockchain, Bitcoin and Cryptocurrency: The Three Aspects of Modern

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 National Conference on Recent Advances in Computer Science and IT (NCRACIT)
International Journal of Scientific Research in Computer Science, Engineering and Information Technology
© 2018 IJSRCSEIT | Volume 4 | Issue 1 | ISSN : 2456-3307

Blockchain, Bitcoin and Cryptocurrency: The Three Aspects of

Modern Transactions
Tanvi Gupta1, Aditya Gupta2
1 Department of Computer Science and Engineering, SMVDU Katra, Jammu & Kashmir, India
2 Department of Computer Science and Engineering, BGSBU Rajouri, Jammu & Kashmir, India

ABSTRACT

Blockchain, the distributed ledger technology has revolutionized the world of online transactions globally. It
has various other uses but the most prominent one is the purpose of it serving as an underlying technology for
the most popular and successful cryptocurrencies to this date known as the bitcoin. In this paper, we shall
discuss about how the bitcoin, blockchain and the cryptocurrencies are integrated with each other and how
they complement each other in order to make the online transaction phenomenon more friendly, accurate
and efficient. We also review various security vectors and solutions that come across while deploying these
techniques. The future possibilities and exploring probabilities of the three aspects is also very briefly
discussed in this paper.
Keywords: Bitcoin, Cryptocurrency, Blockchain, Security Vectors.

I. INTRODUCTION blockchain in bitcoin made it the first

Bitcoin was deployed in 2009 and since its
implementation; it has achieved unparalleled and
unprecedented success [1].
cryptocurrency has released more than 600 surplus
cryptocurrency have been
Cryptocurrency is a system for exchanging tokens
between users underpinned and mathematically
verifiable i.e. settles exchange
counterparties that don’t trust each other. The
bitcoin being the most popular cryptocurrency
records all the transactions in an open distributed
public ledger i.e. blockchain [3]. The addition of
blockchain makes it more interesting as it does not
need a third party and the whole structure is thus
decentralized. The blockchain is basically is list of
records known as blocks which contains all the
information related to a transaction and are linked
and secured using cryptography.
cryptocurrency which overcame an issue of double
spending attack without the involvement of any
third party or any authority which needs to be
Since bitcoin trusted or any central server. If blockchain become
mainstream, anyone who can access internet can
proposed [2]. make transactions. Currently according to survey by
the global agenda council of the world economic
forum, a small part of the world’s GDP
between (approximately 0.025%, or $20 billion) is held in the
block chain. However, according to the survey of the
forum, banks, insurance companies, high-tech
enterprises see this technology as a way to speed up
the settlement and reduce costs, so that this will
increase significantly in the next years. Security and
power are probably the most important characteristic
of the currency, and the cryptocurrencies achieved
using encryption techniques and decentralized
approaches. Decentralization avoids both the point
Introducing of failure but it is likely to offer forms of

CSEIT411848 | Published - 25 April 2018 | March-April-2018 [ (4 ) 1 : 291-294 ] 291

 disagreement between the parties [2]. To achieve It is a computer-aided, open source, and blockchain
agreement between the nodes, cryptocurrencies are distributed computer network that includes
taking advantage of dividing a mechanism that intelligent contractual operations. The protocol has
allows the maintenance of a single system overview also provided a decentralized virtual machine called
of its situation, the blockchain [4]. Blockchain gives Ethereum Virtual Machine (EVM) and is also called
us a technology for establishing shared and the ether called a global network of nodes called
immutable version between counter parties that are turning-complete scripts [8].
not relaying on each other and even has the potential
to create a huge splash in any stream like financial B. Ripple Consensus Network
and industrial that completely depends on the third The Ripple Transaction Protocol has been issued
parties. For better understanding the current in 2012 and developed on an open source distributed
ecosystem of block chain applications, a scalable consensus ledger, internet protocol, and aboriginal
proof of concept pipeline for analyzing multiple currency known as XRP (ripples). Ripples basically
streams of semi-structured data is posted on social enables fast, instant, safe and globally free
media is always demonstrated which is also based on transactions of any scale without any charge. This
open source components. Preliminary analysis protocol supports fiat currency, token based
suggested that the data which was found on deep currency, commodity, mobile minutes, etc. [8].
web is complimentary to that which is available on
conventional web. In future the system will scale to C. Hyperledger
cloud based, real time, analysis of multiple data It was introduced in 2015 by Linux Foundation as
streams with information extraction and machine an open source blockchain platform to support
learning capabilities [5]. Cryptocurrency has been blockchain based distributed ledgers. This protocol’s
able to deal with peer-to-peer systems, blockchain ledger was developed to support international
technology has been developed and being used in business transactions, technological and supply chain
financial, financing, and financial systems, but it business, with the motive of improving performance
doesn’t have the power to sell [6]. There are 4 major and reliability aspects [8].
protocols to increase awareness among the users and
the investors who are investing in this. Bitcoin:-It II. BITCOIN WALLET
was proposed by Satoshi nakamoto as a virtual
electronic currency and it doesn’t involve any third Bitcoin wallets contain private key, secret codes
party as it is peer-to-peer cash system. In banking that allow you to spend bitcoins. Basically it’s not
and finance it has been recognized as revolutionizing bitcoins that need to be stored instead it’s the private
technology in terms of transaction and their security key that needs to be stored, which gives excess to
and privacy. Bitcoin has the following characteristics: bitcoins. A bitcoin wallet is actually an application,
website, or device that manages bitcoin private key.
1. There is no involvement of third party for There are two types of wallet:
any transaction.
2. Non-reversible transactions are enabled. 1. Hardware wallet
3. Doesn’t increase credit cost in minor casual a. Ledger nano s
transactions. b. Trezor
4. Doesn’t increase transaction fees. c. Keepkey
5. Double- attack is prevented. 2. Hot wallet

A. Ethereum A. Hardware wallets

Volume 4 | Issue 1 | March-April-2018 | www.ijsrcseit.com 292

 These are physical electronic device which are built
for the sole purpose of securing bitcoins. This
hardware wallet must be connected to your mobile
or tablet before spending bitcoin. Wallets are the
easiest way to secure bitcoin, easy to backup, setup is
even easy for non-technical users. These hardware
wallets are not free as in we need to buy them with
money.
only lose their products but also their customers.
Remedial measures such as the presence of a network
observer, disabling the direct incoming connections
can help to countermeasure the nature of such
attacks.

B. Hot wallet
These wallets run on internet connected devices.
These wallet generate private key on internet which
makes them more secure. They can store small
amount of bitcoins, these are convenient i.e. B. Brute force attack
receiving and spending payments are easy and fast. Brute force attack is also an attack which considers
These are not good for storing secure large amount of the blunder of double spending. It is done by
bitcoins. The following table shows different kinds of privately mining the blockchain fork [10]. This also
wallet [3].
is primarily targeted at merchants and sellers. The
counter measuring to this attack can be done by
III. ATTACKS
confirming the transactions repeatedly.

A. Double Spending Or Race Attack C. Vector 76 Or One-Confirmation Attack

This attack occurs when same Bitcoin has been spent
in multiple transactions. Two conflicting transaction
has been send in rapid succession. This attack is
primarily targeted to either seller or merchants. In
this attack the sellers has to go through the loss as
they lose away the product which creates block
chain forks [9]. To overcome this attack we can
insert observers in the network, communications
alerts must be there among peers, nearby peers can
also notify about the double spending attacks to
merchants, merchants can disable the
communication or direct incoming connections [10].
The following table shows how double send attack
can happen [9]
Finney attack: - The finny attack considers a
deceitful and immoral miner who specifies and
shows a pre mined block so that when the product is
received from a merchant, the double spending
mischief is achieved [3]. The attack is primarily
targeted at sellers or merchants. The attack has
adverse effects on the sellers and merchants who not
Vector 76 or one confirmation attack is the
collaboration of the double spending and Finney
attacks [3]. The primary target of such attacks are the
bitcoin exchange services.
D. Block Discarding Or Selfish Mining
Block discarding or selfish mining is the process of
misusing the feature of bitcoin forking so as to
achieve an unfair reward in a deceitful manner [3].
The miners who are honest and proper are effected
direct
by such attacks. Techniques such as zero block
technique can be used as remedies.
E. Block withholding
Block withholding is an attack where the miner
submits only the ppows (proof of work) and not the
fpows in a respective pool [10]. These attacks
facilitate the wastage of useful miner resources and
also slash the revenue of the pool. To counter these
attacks only trustworthy miners should be given

Volume 4 | Issue 1 | March-April-2018 | www.ijsrcseit.com 293

 admission into a pool and the pool should be closed [12] Securing smart cities using blockchain technology, K.
when unexpected slashing of revenue occurs. Biswas,2016,ieee

II. METHODS AND MATERIAL

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III. CONCLUSION

Although a conclusion may review the main points

of the paper, do not replicate the abstract as the
conclusion. A conclusion might elaborate on the
importance of the work or suggest applications and
extensions. Authors are strongly encouraged not to
call out multiple figures or tables in the conclusion
these should be referenced in the body of the paper.

IV.REFERENCES

[1] SoK: Research Perspectives and Challenges for Bitcoin

and Cryptocurrencies, Joseph Bonneau,2015,ieee
[2] Cryptocurrency Networks: A New P2P Paradigm,
Sergi Delgado-Segura, 2017, Hindawi
[3] A Survey on Security and Privacy Issues of Bitcoin,
Mauro Conti, 2017, ieee
[4] A. Narayanan, J. Bonneau, E. Felten, A. Miller, and S.
Goldfeder, Bitcoin and Cryptocurrency Technologies,
Princeton University Press, Princeton, NJ, USA, 2016.
[5] Rapid Prototyping of a Text Mining Application for
Cryptocurrency Market Intelligence, Marek
Laskowski ,2016,ieee
[6] Blockchain, blueprint for a new economy, Swan
Melanie,2015, O’Reilly Media Inc
[7] On Bitcoin markets (in)efficiency and its evolution,
Ladislav Kristoufek,2018,Elsevier
[8] Bitcoin: A Peer-to-Peer Electronic Cash System,
Satoshi Nakamoto,2016,ieee
[9] A Survey on Security and Privacy Issues of
Blockchain, Sandeep Kumar E,2017,ieee
[10] Have a snack, pay with bitcoins, T. Bamert,2013,ieee
[11] Theoretical bitcoin attacks with less than half of the
computational power (draft), L. Bahack,2013, Elsevier

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